Nov 28, 2014
Spotify Revenue Passes $1bn Despite $80m Loss

Spotify have revealed their financial earnings for 2013, and while the most striking figure is an $80 million net loss, it’s an improvement on their $115 million loss in 2012, and their revenue is over $1bn for the first time–a 74% increase from the previous year.

These stunning figures highlight the unusual nature of the way Spotify operates. The company says that 70% of their revenue goes to artists, and despite the vocal criticism from some, Spotify still heavily relies on the “freemium” model, with most of their cash coming from a relatively small number of subscribers. The tide seems to be turning though, and with streaming set to become more and more relevant in the near future, Spotify is certainly heading in the right direction.